Answer: $5,676.87
Step-by-step explanation:
Hi, to answer this question we have to apply the compounded interest formula:
A = P (1 + r/n) nt
Where:
A = Future value of investment (principal + interest)
P = Principal Amount
r = Nominal Interest Rate (decimal form, 6.45/100= 0.0645)
n= number of compounding periods in each year (2)
Replacing with the values given
A = 5,000 (1+ 0.0645/2)^ (2x2)
A = 5,000 (1.03225)^4
A = $5,676.87
